"No matter what price we choose, we always make the same revenue"
1–10 of 77 posts
Re: "No matter what price we choose, we always make the same revenue"
#2In his position I might stick with a higher price. I'll sell fewer units meaning there's not as many clients to support while making the same revenue.
Re: "No matter what price we choose, we always make the same revenue"
#3In his position I might stick with a higher price. I'll sell fewer units meaning there's not as many clients to support while making the same revenue.
At the lower price, you produce a lot more consumer surplus. This is valuable if you're the charitable type.
Re: "No matter what price we choose, we always make the same revenue"
#4A fine example of the price elasticity of demand. Not surprising in the slightest, but a helpful real-world illustration.
Re: "No matter what price we choose, we always make the same revenue"
#5So, of the people paying $1 for the product, you know that half of them would gladly pay $2?
Sounds like it's time for 2 versions of the product : (i) The almost-full-featured version ($1) and (ii) The super-duper gold-plated version ($2). The removed feature doesn't even have to be very useful : You might lose 10% of the $1 value people, but snag 25% of the $2 value people (who just want some justification for paying the full value to them).
Re: "No matter what price we choose, we always make the same revenue"
#6I wonder what happens when he sells for $0. An infinite number of buyers?
Re: "No matter what price we choose, we always make the same revenue"
#7Is this why products often enter market at a high price, which is then lowered gradually?
Re: "No matter what price we choose, we always make the same revenue"
#8In his position I might stick with a higher price. I'll sell fewer units meaning there's not as many clients to support while making the same revenue.
At the lower price, you produce a lot more consumer surplus. This is valuable if you're the charitable type.
It will also lead to, if the app is a good experience for the customer of course, more word of mouth marketing which can lead to more publicity and more sales.
Re: "No matter what price we choose, we always make the same revenue"
#9So, of the people paying $1 for the product, you know that half of them would gladly pay $2? Sounds like it's time for 2 versions of the product : (i) The almost-full-featured version ($1) and (ii) The super-duper gold-plated version ($2). The removed feature doesn't even have to be very useful : You might lose 10% of the $1 value people, but snag 25% of the $2 value people (who just want some justification for payin…
It's hard to do that with a product that's specialized in removing features
Re: "No matter what price we choose, we always make the same revenue"
#10Is this why products often enter market at a high price, which is then lowered gradually?
No, that's for price discrimination.